Electricity can benefit individuals by paving the way for better health, more advanced health services and better everyday life. Some 1.6 billion people in the world today have no electricity. At the same time, developing energy production facilities is very capital-intensive. The International Energy Agency (IEA) estimates the need for investment in power production in developing countries to be USD 3 400 billion going forward to the year 2030.
Norfund wishes to promote clean energy production as a basis for economic growth and enhanced quality of life in developing countries. This is best done by investing in equity, mobilizing other capital and combining this investment with expertise and insight into the sector. The collaborations with Norwegian energy producers such as Statkraft and Scatec Solar and are examples of this.
Norfund has a strong focus on commercially proven renewable energy technologies, especially hydropower, solar and wind. Bio-energy investments are also considered selectively.
Norfund’s strategy is to mobilize sound technical partners while at the same time diversifying its portfolio. SN Power has shown that with the right combination of capital and expertise it is possible to deal with the many risk factors involved in making clean energy investments commercially sustainable. The restructuring of SN Power, the establishment of SN Power Africa and the contributions from Statkraft, TrønderEnergi and BKK are sizable steps towards realizing Norfund’s strategy in this area.
Development impact- fighting poverty by providing power!